Sourcing giant Li and Fung has signed a new agreement with retail behemoth Walmart, replacing a two-year-old agreement and opening the door for Li and Fung to offer new services.
Li and Fung had previously traded with Walmart through a wholly owned subsidiary called Direct Sourcing Group. The new agreement will allow Li and Fung to trade directly with Walmart, and this move to a supplier relationship will allow them to provide Walmart with design, replenishment, and other services that could not be provided as a buying agent.
Under the new agreement, Walmart also gave up the option to purchase Direct Sourcing Group. The Group will continue to supply Walmart’s Sam’s Club stores.
